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Altona Resources

  • BY: Andrew Hore |
  • POSTED: 26/02/2008 |

Altona Resources is raising £11.6m from a share placing with its new Chinese investor. 

Hong Kong-based Tongjiang International Energy Co will invest in the coal-to-liquids company in three tranches. It will invest £1.045m at 4.75p a share by the end of February 2008. A further £4.575m will be invested at 4.85p a share by 15 April 2008. The rest of the cash, £8m at 4.85p a share, will be invested by the end of June 2008.

The second and third tranches are dependent on shareholder approval and regulatory clearance. An EGM will be held before 15 April.

These investments are all at prices well above the share price at the start of the year but they are lower than the present share price of 5.5p, down 0.25p on the day.

Tongjiang is part of a group with energy and resources interests in China and other parts of the world. The first tranche gives it a 7.2% stake in Altona. The other two tranches will take the figure to 45.9%.

This cash will provide a significant chunk of the funding needed to push forward with the Ackaringa project in South Australia. This involves a 10 million barrel per year coal-to-liquids and 560MW co-power generation project.

The tie-up also provides a way of finding potential customers in China for the fuel produced by the project.

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